Built to inform

Sign up for the daily newsletters

No, Thank you

Bayut: Average annual Dubai rents rise to $37,500

Bayut's report found rental values to be 3% higher than the average apartment rent of $36,500 at the end of December 2015

Average annual Dubai apartment rents rise to $37,500 in January 2015.
Average annual Dubai apartment rents rise to $37,500 in January 2015.

The average annual apartment rent in Dubai across all bedroom categories rose to $37,572 (AED138,000) in January, according to a new report by Bayut.com.

The real estate website's report found rental values to be 3% higher than the average apartment rent of $36,500 (AED134,000) at the end of December 2015.

Localities offering affordable rental options in the UAE property market are fast gaining popularity among tenants. 

"The shift is only natural when a large number of middle- and low-income individuals and households are making their way to the city owing to unabated development that keeps churning out jobs," the report said. 

"The city has a vast population of labour from South and Far East Asian countries that fall in the middle-tier income groups, thus spurring demand for affordable housing units."

In January, Bayut.com noted Dubai apartment rents declining in certain bed groups while increasing in others. 

As the prices in Dubai's real estate market have been experiencing soft adjustments over the last year and rents remaining robust, the return or yields for invetors in the apartment category have bcome highly attractive.

On average, apartment yields across the Emirate were estimated at a little over 6% - although the yields go up to 10% depending on location and quality of projects. 

In its month-on-month study, Bayut found that average annual rents for studio apartments were around $16,000 (AED59,000) - a negligible 1% decrease compared to December 2015. 

One-bedroom apartments were being rented for an average of $26,000 (AED97,000) in January, registering a 0.8% decrease, while two-bed and three-bed apartments posted 0.1% and 2.2% increases with average annual rents of $41,000 (AED151,000) and $57,000 (AED211,000) respectively. 

The four+ bedroom category saw a rental decline of 2.2% in January, down to an average of $90,000 (AED330,000) from $92,000 (AED337,000) in December 2015.

According to Bayut's research trends, Dubai Marina remained the most popular locality for renting apartments in Dubai - followed by Jumeirah Lakes Towers.

Bur Dubai, Downtown Dubai and Business Bay rounded off the list of top five localities for renting apartments in January. 

Most popular

Awards

Construction industry conversations around digitisation must evolve
The Middle East construction industry’s approach to tech must evolve and focus on how can

Conferences

CW In Focus | Inside the Leaders in KSA Awards 2019 in Riyadh
Meet the winners in all 10 categories and learn more about Vision 2030 in this
CW In Focus | Leaders in Construction Summit UAE 2019
A roundup of Construction Week's annual summit that was held in Dubai this September

Latest Issue

Construction Week - Issue 754
Nov 23, 2019